Bankruptcy Case.

Manawatu Herald, Volume III, 21 March 1890, Page 2

Bankruptcy Case.

In Horton's bankruptcy case at Blenheim Mr Justice "Richmond delivered judgement &v [fellows:— This case is, in one respsot, uniqne. The bank which bast throughout supported the bankrupt, is the only creditor who' has not been paid 20s in fchejpound, and, of course, the only creditor opposing his discharge. The bank complains th it Mr Horton set up a vexatious defence to their suit to. recover the balance of his account , current ; that delay thus gained enabled him to stave off bankruptcy and to proaeed, uncontrolled, with the liquidation of his estate, and that he used his opportunity by paying all other creditors in full, leaving to the baok a dividend whioh will [probably, not e^ceectlOs in the ponn3. The bank at first made the proceedings the grounds of a 'charge of misdeameanour under subjection 5 ofsecMon 171 of the Act of 1888. This criminal charge hag, however, been withdrawn, but Mr McCallum {insists upon the right of the bank to use the circumstance! on which it was founded as a reason for suspending the bankrupt'sfdischarge. As regards payments to other creditors, the bankfhas elected nottoinv peach them as fraudulent preferences. The defence to the bank's action was, without doubt, not justifiable in a technical point of view ; but lam of opinion, under all circumstances, that the offence, if it were one, must be considered to have been condoned for all purposes, and that it is not now available as a ground of opposition. Mr Hovton did certainly endeavour to 'stave off bankruptcy. He say that he fully believed that'with the assistance of friends he might, if al'owed to go on, have paid every creditor<in full. I cannot say that this belief was unreasonable Moreover, h« offered an assignment, so I conclude from the evidence that big chief creditors, except the bank, were willing, and recommended he should be allowed to liquidate under super vision. The bank, however, rejected the recommendation. The irrita* tiono'tha creditor is natural and inevitable under the circumstances. I am far from approving Horton'g conduct, butjhere baa been nothing nraoun'ing to fraud; Everything done was done openly 7 r ae conduct of the bankrupt was rather masterful and overbearing than fraudulent.

That ha should Wo bawi anftbled fco Hsflumesnch a position 10 his largest eL-editor is surprising. Ho had been encouraged by a long forbearance. There had been much cracking of the whip, but no punishment. In dealing with him there had beon a reversal" of the maxim, fortiter in re, suaviterin modo, and Mr Horton had come to think} thut he could dp. as ho liked. He had been a spoilt ' child of the Bank of New Zea and, and had rewarded bis parents ;in the usual way. The bankrupt's discharge would be granted. j